Kim Williams says poor News Corp figures are not his fault

Madeleine Heffernan

The poor financial health of News Corp Australia's newspapers has been exposed by the release of confidential documents showing continuing losses at its flagship publication The Australian, diving profits for its tabloids, and swingeing job cuts.

The accounts, for the year to June 2013 as News Corp was splitting into two, showed revenue at The Australian fell 20.2 per cent to $107.6 million. Operating income for the broadsheet fell to a loss of $27 million.

The Herald Sun contributed operating income of $34.6 million to the group, down 40.5 per cent, while the Daily Telegraph's operating income fell 64.5 per cent to $8 million.

Australian permanent staff numbers were slashed by 987 over the year to 8019.

Kim Williams, who was chief executive at the time of the accounts, said: ''I've no doubt there will be a festival of vengeance against me. I have nothing to say.''

He added: ''What all print journalism companies are dealing with are completely immutable and unstoppable forces. And people who deny that is the case are clearly living in a different world than I am living in.

''I haven't seen the Crikey piece. Apparently there's some suggestion that this is all my fault.'' He added: ''Obviously, I beg to differ.''

Mr Williams defended his decision to pay $30 million for the media business of ABC presenter Alan Kohler, which the figures show cost News Corp Australia $2.5 million despite its $3.5 million revenue. ''Here's one thing about purchase prices: people always have 100 per cent hindsight.''

Mr Williams announced his departure from News Corp in August last year, just months after News Corp split in two, and the time of these accounts.

His successor, Julian Clarke, described the figures on Wednesday as ''14 months out of date, have been illegally circulated and are not from our statutory accounts. They do not reflect the current performance of the business''.

He told staff in an email: ''We have continually emphasised our confidence in the future of our print and digital assets, driven by an experienced management team which has developed robust plans for the future.

''We will be sharing details of these plans with you over the next few weeks and I look forward to working with you as we continue to build the business.''

The company declined to comment on whether its 2014 results were better, but veteran media analyst Mark McDonnell noted News Corp's recent results ''readily acknowledged that the Australian business continues to deteriorate''.

News' Australian newspaper revenue fell 18 per cent in the year to June, accounting for a majority of the revenue decline in the company's flagship news and information arm. But News Corp chief executive Robert Thomson hinted at an improvement in Australian advertising conditions, citing ''green shoots on the Nullarbor Plain''.

One fund manager said The Australian's losses were ''not an unsubstantial amount of money. I imagine the stock is mainly valued on its 61 per cent REA shareholding''. REA Group owns real estate classified site realestate.com.au.

Prominent media investor Simon Marais of fund manager Allan Gray said the departure of Rupert Murdoch as News Corp chairman would likely cause abrupt changes to the local operation. ''When he goes, you would think the new guy will probably come in and say, 'Why are we doing this?' ''